Rogers Communications Q1 Net Income Rises; Increases FY22 Guidance

(RTTNews) - Rogers Communications Inc. (RCI.TO, RCI) said it delivered strong first quarter results across all businesses, driven by better execution and the continued improvement in Canada's economy. Consolidated adjusted EBITDA increased 11% and adjusted EBITDA margin increased by 260 basis points primarily due to increases in Wireless and Cable adjusted EBITDA. Total revenue and total service revenue increased by 4% and 6%, respectively, driven by revenue growth in Wireless and Media businesses. Wireless service revenue was up 7%. Media revenue increased by 10%, primarily as a result of higher sports-related revenue. Looking forward, the company increased its 2022 service revenue, adjusted EBITDA, and free cash flow guidance.

First quarter adjusted earnings per share was C$0.91 compared to C$0.77, prior year. On average, ten analysts polled by Thomson Reuters expected the company to report profit per share of C$0.60, for the quarter. Analysts' estimates typically exclude special items.

Net income increased to C$392 million or C$0.77 per share from C$361 million or C$0.70 per share, last year.

Total revenue increased to C$3.62 billion from C$3.49 billion, prior year. Analysts on average had estimated C$2.67 billion in revenue.

For 2022, the company now projects an increase of 8% to 10% in adjusted EBITDA, revised from prior guidance range of 6% to 8%. Total service revenue is expected increase 6% to 8%, updated from previous guidance range of 4% to 6%.

The company noted that the Shaw transaction remains on track to close in the second quarter of 2022.